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What Healthcare Reform Means for Systems Contractors

May 18, 2010 12:00 PM

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After months of debate, President Obama has now signed all portions of healthcare reform into law. The bill is estimated to provide healthcare to more than 32 million Americans by 2019. Consequently, there are many important factors that business owners need to know about this reform. For the first time in U.S. history, employers will be subjected to taxes if:

  • They do not offer any medical coverage to employees
  • The coverage they do offer fails an affordability test.

Exemptions apply to businesses with 50 or fewer employees. Employers may have to change plan designs to comply with a wide range of new requirements within six months of enactment of the new bill.

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Flexible spending accounts (FSAs) will be limited in the amount of pre-tax dollars employees can pledge and what qualifies for reimbursement.

Beginning in 2018, employers that offer health insurance plans considered to be costly, often referred to as “Cadillac” plans, will be issued an excise tax.

Medicaid is being expanded for the low-income uninsured. This extends federally subsidized health insurance premiums to uninsured individuals with incomes up to 400 percent of the federal poverty level.

However, self-funded medical plans, such as NSCA’s SystemsPlus Health Solutions program, will face fewer mandates than fully insured plans. These self-funded plans that go into effect within six months after the enactment of the legislation are grandfathered in and not subject to the majority of new requirements. If you haven’t already, now is a critical time to switch to SystemsPlus Health Solutions to ensure the continuity of healthcare coverage and cost-saving benefits. Visit to learn more or get a quote.

NSCA will keep you informed of factors that relate to your business as the healthcare reform bill continues to evolve. In the meantime, visit for a Q&A on healthcare reform and what it means for your business.

For more information, contact NSCA Director of Government Affairs & Industry Outreach Cathy Mrosko at or (571) 263-9800.

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